Here's Why Service Corporation (SCI) Stock Appears Promising

Core Insights - Service Corporation International (SCI) is experiencing growth in its Cemetery segment revenues, with consolidated Cemetery revenues reaching $440.6 million in Q1 2024, up from $419 million in the same quarter last year, marking a 5% increase in comparable cemetery revenues [3] - The company is focused on capital investments to enhance its network, including renovations of existing funeral locations and the establishment of new cemeteries in high-growth areas [5][12] - The company has a solid acquisition pipeline and aims to be at the upper end of its $75-$125 million acquisition goal for 2024 [13] Financial Performance - In Q1 2024, core revenues increased by $18.9 million, driven by a 7.8% rise in comparable preneed cemetery sales production [3] - The Zacks Consensus Estimate for 2024 earnings per share (EPS) is projected to be between $3.50 and $3.80, indicating a year-over-year growth from $3.47 per share in 2023 [14] - The company's shares have risen by 6.9% over the past six months, outperforming the industry growth of 2.9% [2] Investment Strategy - In Q1 2024, the company invested $103 million in enhancements, with approximately $70 million allocated for maintenance capital expenditures [11] - Management is elevating cemetery inventory options to cater to a diverse customer base, including both casketed and cremation consumers [12] - The company continues to seek market share opportunities through the construction of new funeral home facilities [5]